A bond of Telink Corporation pays ?$110 in annual? interest, with a ?$1,000 par value. The bonds mature in 20 years. The? market's required yield to maturity on a? comparable-risk bond is 9 percent.
a. Calculate the value of the bond.
b. How does the value change if the? market's required yield to maturity on a? comparable-risk bond? (i) increases to 12 percent or? (ii) decreases to 66 ?percent?
c. Interpret your findings in parts a and b.